This paper explores the meaning and challenges of supply chain collaboration, emphasizing the need for a segmented approach based on customer behavior and service needs. Despite its infancy, supply chain collaboration has faced difficulties in implementation, including over-reliance on technology, lack of trust between trading partners, and unclear collaboration boundaries. The paper argues that a supply chain segmentation approach is essential for effective collaboration, as it allows for tailored strategies and processes that meet the specific needs of different customer segments. It also highlights the importance of understanding the cultural, strategic, and implementation elements of collaboration, which are interrelated and can act as both barriers and enablers. Key elements of successful collaboration include trust, mutuality, information exchange, and open communication. The paper also discusses the need for internal and external collaboration, the importance of process alignment, and the role of technology in facilitating collaboration. It emphasizes that collaboration requires significant resources and commitment, and that organizations should focus on a small number of key partners rather than trying to collaborate with everyone. The paper concludes that a segmented supply chain approach is more appropriate for collaboration, as it allows for more effective and targeted collaboration strategies. The paper also identifies several areas for further research, including the relationships between the various elements of collaboration and the development of appropriate performance measures for supply chains.This paper explores the meaning and challenges of supply chain collaboration, emphasizing the need for a segmented approach based on customer behavior and service needs. Despite its infancy, supply chain collaboration has faced difficulties in implementation, including over-reliance on technology, lack of trust between trading partners, and unclear collaboration boundaries. The paper argues that a supply chain segmentation approach is essential for effective collaboration, as it allows for tailored strategies and processes that meet the specific needs of different customer segments. It also highlights the importance of understanding the cultural, strategic, and implementation elements of collaboration, which are interrelated and can act as both barriers and enablers. Key elements of successful collaboration include trust, mutuality, information exchange, and open communication. The paper also discusses the need for internal and external collaboration, the importance of process alignment, and the role of technology in facilitating collaboration. It emphasizes that collaboration requires significant resources and commitment, and that organizations should focus on a small number of key partners rather than trying to collaborate with everyone. The paper concludes that a segmented supply chain approach is more appropriate for collaboration, as it allows for more effective and targeted collaboration strategies. The paper also identifies several areas for further research, including the relationships between the various elements of collaboration and the development of appropriate performance measures for supply chains.